Overview

Diversifying the structure: Leveraging stability to push ahead
OBG
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Oil and gas production continues to dominate the Algerian economy, accounting for almost all of exports, close to half of government revenue and over a third of GDP. In recent years non-hydrocarbons GDP has outstripped wider economic growth, though this is largely driven by public spending rather than private sector activity. The government, flush with revenues from sustained high oil prices,…

Overview

System overhaul: Reforms to the bourse are hoped to encourage listings
OBG
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Operational since 1999, the Algerian stock exchange, Bourse d’Alger, is characterised by low levels of activity and liquidity, with just three equities and two corporate bonds currently listed, and with government bonds accounting for over 90% of trading. However, the authorities are working on a project that will significantly overhaul the framework of the exchange to boost activity. Implementation…

Overview

A rich vein: Developing mineral resources in conjunction with international partners
OBG
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Although it is well known as a major player in the global oil and gas industry, it is Algeria’s mining sector that is now in the spotlight, with the country expected to benefit from recent legislative and regulatory changes, as well as increasing government backing. Mining has long been considered an important basis for industrial development and is a vital part of various national plans and…

Overview

Long-term rewards: Initiatives to boost lending and expand networks are being enacted
OBG
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High levels of liquidity and a total loan book that accounts for just half of deposits characterise the Algerian banking sector. The industry remains dominated by publicly owned banks, which constitute around nine-tenths of deposits and loans, though foreign-backed private banks are major players in trade finance and are highly profitable. Penetration is roughly in line with neighbouring countries…

Overview

A place of your own: Expanding options is a top priority in both the residential and commercial segments
OBG
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Following the global economic downturn in 2008, Algeria’s real estate market suffered a slowdown, incurring the loss of some key investors and the postponement of various projects. Nevertheless, sector developments remain largely positive, driven by significant government and private sector investments to increase housing availability and realise several major real estate projects. Continued…

Overview

Creating space: Expansion continues following deregulation and technology gains
OBG
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Since the liberalisation of the telecommunications sector in 2000, Algeria has become one of the highest teledensity markets on the African continent. With a mobile penetration rate nearing 100% and a fixed-line segment at 8% and growing, the sector is on a steady rise with numerous growth opportunities. While the fixed-line segment is controlled by a single public operator, the mobile market is…

Overview

Moving forward: The state continues to implement its plan to upgrade infrastructure
OBG
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Under the previous and current five-year plans of 2005-09 and 2010-14, a major government objective has been the modernisation and expansion of Algeria’s transport networks. With some €229bn having been allocated to the development of railways, airports, public transport, roadways and ports, major public works projects are under way to facilitate mobility, reduce congestion and encourage the…

Overview

Opportunities come online: The sector is growing within a defined structure
OBG
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Despite its considerable population size, internet usage in Algeria remains low. With only 1m internet subscribers in a population of over 37m as of mid-2012, the sector demonstrates attractive expansion prospects. Both the government and key industry participants have demonstrated commitments towards developing the sector in line with growing demand, business expansion and rising consumer purchasing…

Overview

Good press: With rapid growth projected for the next decade, the industry has much potential
OBG
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Valued at approximately €123m in 2008, the advertising sector in Algeria has demonstrated steady growth over the last several years, having doubled in value between 2008 and 2012 to around €250m. While up-to-date figures are hard to come by, Algeria is still considered to constitute the second-largest advertising market in the Maghreb in terms of value and has the potential to become number…

Overview

By the book: New foreign investment rules have tangible effects
OBG
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As a market of about 37m inhabitants with substantial energy resources and steady demand for modern infrastructure supported by public investment, Algeria has been attracting strong foreign investor interest. During 2009, in the context of the global economic crisis, Algeria saw a fall in revenues from its oil and gas exports combined with a sharp rise in imports of goods and services and the dividends…